Wednesday 17th August 2011
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The New Zealand dollar made moderate gains as it followed the track of equities in the United States.
At 8am the kiwi was at US83.58c from US83.35c at 5pm, and lifted to 0.58 euros from 0.5777.
ANZ said the NZ dollar had drifted toward the US82.80c support level, only to bounce off it and move in tandem with US equities once that market opened.
"The NZD seems happy to just follow equity moves, and understandably so given the lack of any domestic drivers at present. We can expect more of the same today," ANZ said.
The euro dropped against the US dollar as highly anticipated proposals from French and German leaders failed to shore up investor confidence in the euro zone.
French President Nicolas Sarkozy and German Chancellor Angela Merkel proposed a tax on financial transactions and closer joint governance of economic policy to stop the debt crisis in Europe. They did not propose an increase to the euro zone bailout fund or selling euro zone bonds.
Against the Australian dollar, the kiwi edged up to A79.79c at 8am from A79.53c from 5pm, and also made small headway to 64.16 yen from 64.04. The trade weighted index lifted to 71.69 from 71.48.
ANZ said that after the release of Reserve Bank of Australia minutes yesterday, the market was continuing to price in around 130 basis points of Australian interest rate cuts over 12 months. That was enough to see the Australian dollar underperform the New Zealand currency.
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